Download

SAN FRANCISCO--(BUSINESS WIRE)--The U.S. Department of the Treasury and the IRS have recommended a
significant change in the process for determining whether a foreign
nongovernmental organization (NGO) meets U.S. standards for charitable
giving.

In “Reliance Standards for Making Good Faith Determinations,” a document
published today in the Federal Register, Treasury and the IRS
have proposed regulations that lessen the administrative and financial
burdens for U.S. grantmakers to engage in international philanthropy.
Secretary of State Hillary Clinton announced the guidance in an address
at the Clinton Global Initiative, during which she unveiled the Global
Philanthropy Working Group.

The process of evaluating whether a non-U.S. NGO is equivalent to a U.S.
public charity has been subject to rules that have not changed for 20
years. Under current regulations, an equivalency determination is
considered made in good faith if it is based on either (1) an affidavit
of a foreign organization or (2) an opinion of counsel of the grantor or
grantee. Today’s guidance broadens the range of professionals on whose
written advice a private foundation may rely when making such grants.
Secretary Clinton noted in her remarks this morning that the change
clears the way for the establishment of organizations that can serve as
repositories for equivalency determinations, though the proposed
regulations do not specifically address this matter. The Council and
TechSoup Global have been working together to create such a repository,
called NGOsource.

“Secretary Clinton’s announcement this morning elevates the
understanding of the role philanthropy plays in addressing pressing
global issues,” said Vikki N. Spruill, president and CEO of the Council
on Foundations. “At a time when challenges continue to mount and needs
know no borders, this is a critical and positive step in enabling
philanthropy to give as much as it can, where it is needed most,
wherever that may be. The Council is proud to have represented our
members’ needs and taken the lead on bringing about this important
regulatory action.”

“Secretary Clinton’s announcement and the IRS guidance support a shared
cross-sector vision of ways to reduce redundancy and lower costs and are
a welcome signal from the government to grantmakers and their grantees,”
said Rebecca Masisak, co-CEO of TechSoup Global.

“The IRS guidance is an encouraging building block for the development
of an equivalency determination repository that will enable private
foundations to identify and grant to overseas NGOs with greater
confidence and ease,” noted Sheila Warren, director of NGOsource for
TechSoup Global and an attorney with expertise on tax-exempt law. She
added that NGOsource is expected to launch as soon as possible.

Kelly Shipp Simone, deputy general counsel of the Council on
Foundations, said, “While this guidance is key to reducing the burdens
of private foundations in making international grants, we expect it will
also serve as a guide to public charities seeking to make similar
grants. The net result will be to reduce the burden on potential
grantees as well.”

The Council on Foundations, formed in 1949, is a nonprofit membership
association composed of approximately 1,800 independent, community, and
family foundations and corporate giving programs in the United States
and abroad. The Council’s mission is to provide the opportunity,
leadership, and tools that philanthropic organizations need to expand,
enhance, and sustain their ability to advance the common good. For more
information, please visit www.cof.org.

About TechSoup Global

TechSoup Global is a 501(c)(3) nonprofit social enterprise working
towards the day when every nonprofit, library, and social benefit
organization on the planet has the technology knowledge and resources it
needs to operate at its full potential. TechSoup Global was founded in
1987 on the belief that technology is a powerful enabler for social
change. Today, it has over 200 employees and an annual budget of US$33.5
million. It operates programs in Africa, the Americas, Asia Pacific,
Europe, and the Middle East through a network of independent
capacity-building non-governmental organizations. With support of
leading technology companies — including Adobe, Cisco, Microsoft, and
Symantec — TechSoup Global and its network have reached more than
384,000 organizations, including more than 46,000 organizations outside
the United States; distributed more than 10 million technology products;
and enabled recipients in 58 countries to save more than US$3.2 billion
in IT expenses. For more information about the TechSoup Global Network
and its programs visit www.techsoupglobal.org.

About NGOsource

NGOsource, a project of the Council on Foundations and TechSoup
Global, is an equivalency determination service that will help U.S.
grantmakers streamline their international giving. Envisioned by
grantmakers for grantmakers, NGOsource will simplify the often
expensive, complicated, and duplicative task of evaluating whether a
non-U.S. organization is equivalent to a U.S. public charity—a process
known as equivalency determination, or ED. The service is expected to
launch as early as 2013. For more information, please visit www.ngosource.org.